b>A Powerful Tool shall cease collection of the
Have you received a debt, or any disputed portion
collection letter? The law thereof, until the debt collector
provides consumers with a obtains verification of the debt
powerful tool for dealing with or any copy of a judgment, or the
collectors. Credit repair expert name and address of the original
Jim Kemish explains the power of creditor, and a copy of such
debt validation and how to use it verification or judgment, or name
to your benefit.
and address of the original
The Letter of the creditor, is mailed to the
Law
consumer by the debt
The correct way to respond to collector.”
a collection letter is with a
Timing is
written request for debt Everything
validation. This is your right
Please note that there is only
under the Fair Debt Collection a 30 day window of opportunity to
Practices Act (FDCPA), and if request your debt validation.
done in a timely and correct Collectors must abide by the laws
manner can produce fantastic spelled out in the FDCPA, but
results. Let’s start with the these laws only mandate a
law: FDCPA § 809. Validation of response for the 30 days
debts [15 USC 1692g (b) “If the following the date of the initial
consumer notifies the debt collection letter. Beyond the 30
collector in writing within the day window collectors have no
thirty-day period described in obligation to provide the
subsection (a) that the debt, or documents that you request and
any portion thereof, is disputed, you have lost the opportunity to
or that the consumer requests the force compliance. Don’t
name and address of the original procrastinate. Your credit is too
creditor, the debt collector important.
Why Validate the neat. Reference the debt using
Debt?
the identification they provided
Why request validation of a in the collection letter, such as
debt? There are two good reasons collector account number,
that you should request debt creditor account number, creditor
validation on every collection name, etc. Clearly state that you
letter you receive, even if it dispute the collection and that
looks legitimate. First, how do according to the FDCPA you demand
you know that the collector has that the collector provide proof
the legal right to collect? You that they own the debt and have
don’t! Debt is regularly sold, the right to collect, as well as
and just as often re-sold. You proof of the amount owed by
may have incurred an obligation providing a copy of your signed
with the original creditor, but credit agreement with the
you don’t know anything about the original creditor and a complete
party that is currently demanding accounting of amount in question.
payment. So exercise your rights Attach a copy of the collection
and ask them to prove that they letter, and send it certified
own the debt. Secondly, how do mail. If you are not comfortable
you know that the amount of the doing this yourself contact a
debt is correct? Is the interest reputable credit repair company.
calculated properly? Are there Most legitimate credit repair
other fees added? You deserve to businesses offer debt validation
know. As with any other credit as part of their arsenal and will
repair tool, it’s about be happy to do this for you.
exercising your rights!
The Response
The Debt Validation
What happens next? Once you
Letter
have sent a debt validation
Let’s get to work. Write a letter to a collector they must
letter to the collector. Make it satisfy your request with
adequate documentation. Ownership occasionally express concern that
of debt may be proven with a if the collector is pushed too
contract or purchase agreement hard they will send a summons and
transferring the debt to them. attempt to get a judgment. It is
The amount owed may be documented not legal for a collector to take
with account statements from the any additional steps to collect,
original creditor, or a copy of including getting a judgment,
the original signed loan until they have satisfied their
agreement and an accounting of obligation under the FDCPA. If
the total. It is never sufficient you receive a summons after
for the collector to provide challenging a collector with a
their own internal itemization of debt validation letter you will
the debt. In all cases, the need to appear in court with
documentation should be clear and proof that you requested
provide definitive proof of the validation. Going to court is not
collectors claim. an attractive option, but if you
Say Goodbye to the kept proper records and appear
Collector
with your certified mail receipt
What happens if the collector you will prevail.
cannot (or does not wish to)
Copyright © 2007 James W.
provide the documentation that Kemish. All Content. All Rights
you request? If they can’t comply Reserved.
…they can’t collect, they can’t
contact you, and they can’t
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About the Author:
Jim Kemish, a nationally recognized credit repair expert, is the president of Sky Blue Credit, a leading credit repair business since 1989. Jim is also the president of Power Mortgage, a Florida mortgage company.
Article Tags: collector, debt, validation
